Value Chain Commercial, Legal, and Institutional Reform
The Value Chain Commercial, Legal, and Institutional Reform (VcCLIR) diagnostic is a rigorous and tailored analysis of the business enabling environment for a single agricultural commodity. VcCLIR assesses constraints to economic growth at each stage along the value chain, identifying points of interest where certain firms, organizations, or institutions set the parameters under which others in the industry must operate. The diagnostic dives deeply into the agribusiness enabling environment (AgBEE) for that industry, tackling issues such as input regulation and licensing; access to finance, credit, or insurance; fair competition and industry governance; and issues concerning domestic and international trade. VcCLIR provides a clear path to reform through prioritized, practical recommendations that address systemic AgBEE constraints.
More information on the diagnostic
If You Want to Know:
- What are the most critical legal and institutional impediments to the expansion of businesses in one priority agricultural value chain?
- How does a particular industry experience the business climate, and do certain sectors or sub-sectors find doing business easier than others?
- When there is a clear opportunity to develop new products or enter new markets, but the industry does not seem to heed the call of the market, are there policy constraints or institutional inadequacies at play?
- Does the financial sector unfairly perceive greater risk in certain sectors, or certain stages of a value chain?
The VcCLIR diagnostic can help answer these questions and more.
VcCLIR analysis as part of Feed the Future
Value chain development is an important part of the U.S. government?s Feed the Future strategy. USAID has committed to increasing the productivity and competitiveness of selected agriculture value chains. Overly burdensome regulations, unstable government policies, and weak institutions inhibit investment and take money out of the pockets of agribusiness entrepreneurs. VcCLIR offers targeted recommendations for empowering private-sector growth and increasing productivity and efficiency within the value chain.
VcCLIR provides a qualitative diagnostic of the enabling environment issues that constrain agribusiness expansion, inclusion, and growth within a value chain. VcCLIR begins by identifying key players and the relationships between them, with a specific focus on the role of women in the value chain. Through research and stakeholder interviews, the VcCLIR team analyzes the major AgBEE constraints to value chain performance and identifies key opportunities for value chain upgrading through AgBEE reforms. VcCLIR analysis results in concrete, practical recommendations for reform that will positively affect the business climate and market context in which all value chain players operate.
Ease of Use
- Rapid response:The diagnostic team can be deployed within six to eight weeks of the initial request.
- Light footprint:Logistics and scheduling are independently managed and do not require significant USAID mission involvement.
- Flexibility:While the underlying approach to each diagnostic is the same, EAT analysis is flexible enough to handle most mission demands.
- Easy buy in:Accessing EAT project services does not require a new Task Order ? USAID mission can simply transfer funds to the EAT project through a buy-in under the Field Support Database once approved by the Task Order COR.
- Follow up:The EAT project helps integrate assessment results into existing and future programs, activities, and strategies.
- Identifies and describes in detail key laws, regulations, and institutions affecting the agribusiness environment.
- Identifies cross-cutting constraints and opportunities in the agribusiness enabling environment that may serve as critical themes for a reform agenda.
- Identifies the major constraints to small and medium agribusiness expansion and value chain upgrading.
- Presents recommendations on how to strengthen institutions affecting the agribusiness enabling environment for the selected value chain.
- Builds upon commonly recognized constraints and past value chain assessments with a focus on putting existing, known reform needs into action.
- Provides a road map to creating a business climate that supports growth in the subsector.